Olivia Newton-John named a Dame for singing, acting and charity work

Australia's own Olivia Newton-John has been recognised for her singing, acting and charitable work and has been made a dame of the Order of the British Empire.

Newton-John, 71, found fame as Sandy in Grease and went on to sing and act her way into the hearts of people around the world.

Newton-John found fame as Sandy in 'Grease', acting alongside John Travolta. (AAP)

In more recent years, Newton-John has been open about her battles with breast cancer and has worked with charities and other organisations to raise funds and awareness in hopes of discovering a cure for the disease.

Now Newton-John is one of over 1,000 people named on Queen Elizabeth II's New Year's Honours list, which was released in the UK late on Friday night.

The list of honours recognises outstanding individuals in areas like the arts, science, community development and charity.

It's a special honour for Newton-John, who was born in the UK and moved to Australia when she was just five-years-old.

Olivia Newton-John has been named a dame on this year's New Year's Honours list. (Getty)

"As a girl born in Cambridge, I am very proud of my British ancestry and so appreciative to be recognised in this way by the United Kingdom," she told Britain's Press Association.

Newton-John was recognised specifically for her acting, singing and charitable work supporting cancer research, a cause she's been passionate about since her first breast cancer diagnosis in 1992.

In the years since she has established the Olivia Newton-John Cancer, Wellness and Research Centre, which supports cancer patients as wells as carrying out breakthrough research and clinical trials, and overcame a second bout of cancer in 2013.

Australia's sweetheart, Olivia Newton-John. (Supplied)

But in 2017 the disease returned a third time, Newton-John calling this most recent bout "incurable". It makes the recognition of her charitable work with cancer research all the more poignant.

With a career spanning more than 50 years, Newton-John is no stranger to accolades, but an honour as monumental as a damehood isn't easy to come by.

Newton-John would have had to be recommended for the honour, then assessed by a committee of independent experts and senior civil servants who would decide if she was eligible for damehood.

Her name would then be passed to a selection committee, before reaching the final hurdle: the Queen.

That's right, Her Majesty informally approves the honours list each year, meaning the Queen herself likely gave the go-ahead for Newton-John's inclusion this year.

Other notable inclusions on this year's list were Oscar-winning Hollywood directors Sam Mendes and Steve McQueen, and Elton John, who had his current knighthood upgraded to the Order of the Companions of Honour.